Term Loans

A Term loan is a monetary loan that is repaid in regular payments over a set period of time. Term loans usually last between 1 and 10 years, but may last as long as 30 years in some cases. A term loan usually involves an unfixed interest rate that will add additional balance to be repaid. Term Loan is normally preferred by small and medium scale businesses to meet the needs of working capital or to buy assets or infrastructure which is required to run the business on day to day basis. It may include purchase of machinery or buying an office or workshop premises or expanding new business that will increase their profit over time. Term loans are a good quickly increasing capital in order to raise business capabilities.

Essential documents required for processing Term Loan, additional documents may be demanded by Bank / Financial institutions based on case to case basis

• Identity Proof: Valid Passport, PAN Card, Voter’s Card, Any other photo identification issued by Government Agencies.

• Business Proof : VAT/CST Registration No. or MIDC Agreement or SSI Permanent Registration Certificate or Warehouse Receipts or Shop & Establishment Act Certificate or Copy of Lease Agreement along with the latest Rent paid Receipt.

• Address Proof: Latest Electricity/Telephone Bill or Receipt of Maintenance Charges or Valid Passport or Voter’s Identity Card or Purchase/Lease Deed/ Leave & License Agreement of Residence or Office Premises.

• Business Profile On Company’s Letterhead.

• Partnership deed in case of partnership firms.

• Certificate of incorporation, Date of Commencement of Business and Memorandum of Title Deeds, Form 32 in for Addition or Deletion of Directors in case of companies.

• Last three years Trading, Profit & Loss A/c. and Balance Sheets (duly signed by a Chartered Accountant wherever applicable).

• Last one years’ Bank statement of Individuals, Partners, and Directors.

• If existing loan, then sanctioning letter and repayment schedule of the same.

• Firm/Company’s PAN Cards.

• Last one years’ Bank statement of the Firm.

• Individual Income Tax Returns of the Individual/Partners/Directors for last three years.

• The Life of the machinery approved by the authorized valuer in case of second hand or reused machinery is to be purchased.

• Copies of the Invoices of the Assets to be purchased.

• SEBI formalities in case of listed companies.

• Share Holding pattern of Directors duly certified by a Chartered Accountant.

• List of the Existing Directors of the company from the Registrar of the Companies.